Moody’s slashes beleaguered Nokia to ‘junk’

“Moody’s slashed Nokia’s credit rating to ‘junk’ on Friday after the Finnish cellphone maker cut 10,000 more jobs and forecast a wider-than-expected loss, citing worries about its cash position and slow sales of new Windows phones,” Tenzin Pema and Terhi Kinnunen report for Reuters. “Equities analysts also cut their price targets on Nokia stock on fears the company would continue losing market share to Apple, Google and Samsung Electronics.”

“Moody’s is the third ratings agency to relegate Nokia to non-investment grade status, which means many institutional investors such as pension funds will not buy its bonds,” Pema and Kinnunen report. “S&P and Fitch made similar moves in April.”

Pema and Kinnunen report, “‘Today’s rating action reflects our view that Nokia’s far-reaching restructuring plan… delineates a scale of earnings pressure and cash consumption that is larger than we had previously assumed,’ Moody’s analyst Wolfgang Draack said in a note.”

Read more in the full article here.

MacDailyNews Take: Which one goes belly up first, Nokia or RIM?

[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]

32 Comments

  1. “If we want to move forward and see Apple healthy and prospering again, we have to let go of a few things here. We have to let go of this notion that for Apple to win, Microsoft has to lose. We have to embrace a notion that for Apple to win, Apple has to do a really good job. And if others are going to help us that’s great, because we need all the help we can get, and if we screw up and we don’t do a good job, it’s not somebody else’s fault, it’s our fault. So I think that is a very important perspective. If we want Microsoft Office on the Mac, we better treat the company that puts it out with a little bit of gratitude; we like their software. So, the era of setting this up as a competition between Apple and Microsoft is over as far as I’m concerned. This is about getting Apple healthy, this is about Apple being able to make incredibly great contributions to the industry and to get healthy and prosper again.”

    -Steve Jobs (during 1997 corporate collaboraton announcement between Apple and Microsoft.

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